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illuminem summarizes for you the essential news of the day. Read the full piece on Financial Times or enjoy below:
🗞️ Driving the news: The European Union’s energy regulator, Acer, has advised caution in reducing imports of Russian liquefied natural gas (LNG) despite pressures to cut off energy ties with Moscow
• Acer stresses the need for a gradual approach to avoid an energy shock as pipeline gas supplies are expected to decrease by the end of the year.
🔭 The context: Since Russia's full-scale invasion of Ukraine in 2022, the EU has replaced much of the pipeline gas it used to receive from Russia with LNG, including increased purchases from Russia itself
• Russia remains a major LNG supplier to the EU, making efforts to cut down imports complex due to existing contracts and energy security concerns.
🌍 Why it matters for the planet: The reliance on Russian LNG poses challenges for the EU’s energy transition and climate goals
• The ongoing use of fossil fuels from a geopolitically tense region underscores the difficulties in transitioning to renewable energy sources and reducing carbon emissions
⏭️ What's next: European officials will continue to debate and negotiate the terms of reducing reliance on Russian energy, with a proposed complete ban on Russian fossil fuels by 2027
• This includes navigating complications like destination clauses in contracts that restrict the resale of gas
💬 One quote: “It’s a particularly important issue for countries around the Baltic Sea,” said one diplomat involved in the negotiations.
📈 One stat: Russia accounted for 16% of the EU’s total LNG imports last year, a nearly 40% increase from 2021.
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